Noront awaiting Algoma's CCAA outcome

Noront is “working closely” with Sault Ste. Marie and the major players involved in Algoma’s CCAA proceedings to understand how it will unfold and potentially affect the lands that comprise the Port of Algoma.

“We’re trying to get some certainty that we will be able to use that site if indeed that is the site we select,” said Alan Coutts, president and CEO of Noront Resources.

The heavy industrial lands on Sault Ste. Marie’s waterfront have been earmarked as a potential site for a ferrochrome plant if the city is chosen as the successful location for the plant by Noront.

Sault Ste. Marie is one of four Northern Ontario communities who have expressed interest in the plant.

Others include Sudbury, Fort Willian First Nation and Timmins.

Coutts, in a telephone interview with The Sault Star, said representatives from Noront have been touring brownfield sites in all the cities.

Algoma’s CCAA status may be slowing the process down slightly until that clarity is received, he said.

Earlier this week, Sault Mayor Christian Provenzano had said that he’s spoken with the term lenders, who are the existing bidders for the plant, about the importance of the project and the city’s economic development and has received assurances they will be committed to working on initiatives like this one.

It’s believed that potential synergies can be created if Sault Ste. Marie is successful in its bid to host the ferrochrome plant.

Provenzano has even offered to arrange for an introduction between Noront and the term lenders.

Coutts said he hasn’t spoken with the term lenders yet and continues working with EDC representatives.

The issue hasn’t reduced the city’s status for the project, he said.

“Sault Ste. Marie, obviously, is very much in the mix. If it wasn’t we wouldn’t be spending this effort trying to understand how the CCAA process is going to unfold,” he said.

Coutts said everyone has been very supportive of the development in Sault Ste. Marie “and that’s great but ultimately if there are new owners that take over those lands, how do we know that the new owner is willing to go forward with us on that planned purchase or lease. That’s really the heart of the matter there.”

But Coutts said there are issues in other communities that also need to be examined a bit more closely before any decision is made.

Other sites are much closer to residential areas and the communities themselves and more work needs to be done to complete better modelling on the dust and particulate matter that will get disbursed from the processing plant and how much buffering or setback will be required.

Coutts said Noronto wants to ensure the property is large enough so that any dust and particulate remains on its own property. This will determine whether the other sites are still viable.

The biggest off gas from the process is carbon dioxide, he said.

There are also “fugitive emissions” in the form of dust and particulates.

“We are looking at the best class technology, that which we would buy and build, and try to understand those limits and specifications as far as dust goes,” he said.

Noront’s philosophy is that it will take care of all the particulates and wants to ensure they stay on its site. Modelling will determine how far the particulate will travel from the point source, which helps determine how much acreage is required for the complete site.

Sault Ste. Marie’s potential location is not close to residential areas and is not expected to be affected in any way.

Now that the province has announced that an agreement is in place with three First Nation communities to build an east-west roadway, Coutts said that’s a major step forward.

That road is very important to access the metals and bring them out to process.

Metals to be mined are base metals and bulks so a year-round, full access road is necessary to bring the metals to markets for processing.

“It’s imperatives to have the roads and this is a good step forward,” he said.

He said Noront is particularly pleased with a north-south route proposal to Martin Falls, a shorter more direct route to railway lines that would help with large scale chromite extraction and costly transportation.

While initial timelines had suggested the RFP packages would be released to municipalities and a ferrochrome plant location determined by the end of summer, Coutts said that package won’t be released until later this year.

“I can’t say when because we are awaiting the certainty of the SSM site but we really are hoping to have things wrapped up by year end,” he said.

Each community is aware of the various aspects Noront needs nailed down and final part of the process will be for the municipalities to put their unique spin on the proposal including any value-added synergies that may be created.

“We want to see a compelling proposal, with the opportunities, the cost advantages, the synergies and the excitement in the community,” Coutts said.

A ferrochrome facility ultimately prepares and transforms the chromite ore deposits to ferrochrome, the product used to create stainless steel products.

Ferrochrome is created with iron, chrome and oxygen. The high-grade chromite ore taken from the Ring of Fire area is grinded and put through a processing plant that requires high levels of energy to melt the ore and add carbon to separate the oxygen from the iron and chrome. The completed iron and chrome project is called ferrochrome.

It’s expected the plant would require 100 to 130 mW of power to operate a plant. Any lands would need to be properly designated for heavy industrial use and an array of other planning and environmental requirements would also need to be met.

The final product would be exported to the industrial regions in the Northeast United States, such as Ohio and Pennsylvania, to make stainless steel. Currently companies there get their ferrochrome from South Africa and Kazakhstan.

The first of its kind ferrochrome plant in North America is estimated at $1 billion.